On December 14, 2011, FERC rejected a merger mitigation proposal
(Mitigation Proposal) submitted by Duke Energy Corporation (Duke
Energy) and Progress Energy, Inc. (Progress Energy), finding the
Mitigation Proposal inadequate to remedy the adverse effects of the
companies' proposed merger on competition in the Carolinas
markets. Duke Energy Corp., 137 FERC ¶ 61,210 (2011).
FERC had issued an order conditionally accepting the merger on
September 30, 2011 (Merger Order). Duke Energy Corp., 136
FERC ¶ 61,245 (2011). The merger remains conditionally
accepted, and Duke Energy and Progress Energy may submit a revised
mitigation proposal.
Under their Mitigation Proposal, Duke Energy and Progress Energy
proposed a "virtual divestiture" option suggested by FERC
in the Merger Order. The virtual divestiture consisted of a
must-offer obligation to sell specific quantities of energy at
cost-based rates to entities that serve load, directly or
indirectly, in the Duke Energy
